Micro, Small and Medium Enterprises (MSMEs).

Registration of women-owned MSMEs increased more than 86 % during last financial year.

• The registration of women-owned Micro, Small and Medium Enterprises has increased more than 86 per cent during the last financial year.
• The number of registration was four lakh 89 thousand 470 by the end of financial year in 2021 which increased to nine lakh 10 thousand 973 in the financial year 2022.
• This was stated by the Union MSME Minister Narayan Rane in a written reply in the Lok Sabha today. He said the government has taken a series of measures to support the MSMEs in the country.
• He said, Udyam Registration Portal was launched for MSMEs for promoting ease of doing business.
• He said, steps have been taken to provide five lakh crore rupees collateral free automatic loans under the Emergency Credit Line Guarantee Scheme for businesses including MSMEs.

What are MSMEs?

• The Government of India enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006in terms of which the definition of micro, small and medium enterprises is as under
  • Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
    • A micro-enterprise, where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees.
    • A small enterprise, where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.
    • A medium enterprise, where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.

Significance of MSME Sector

• Employment Generation: MSMEs are the second largest employer after the agriculture sector, giving employment to about 11 crore people with low capital and technology requirements.
• Boost to GDP and Exports: They account for almost 30% of the country’s GDP and half of the country’s exports come from products and services within this sector.
• The Ministry of MSME has set a target to increase its contribution to GDP to 50% by 2025 as India becomes a USD 5 trillion economy.
• Promotion of Industries and Innovation: They help in the promotion of industrial development in rural areas, capacity building, local resource mobilization and also an opportunity for budding entrepreneurs to build creative products.
• Inclusive Society: They create an inclusive and sustainable society through the creation of non-farm livelihood. They promote balanced regional development, gender equity and create opportunities for people to use banking services and products.
• Considering the above points, they are called ‘Growth Engine of the Nation’.